THE European Central Bank’s (ECB) chief economist reiterated the bank’s “readiness and decisiveness” to modify its trillion-euro bond-buying program should economic turbulence merit decisive action, according to a Swiss newspaper.

    Interviewed by the Neue Zuercher Zeitung, Peter Praet defended the bank’s stimulus programers, including quantitative easing, saying they had helped avoid a damaging financial panic.

    As turbulence in emerging markets intensifies, he said the ECB remains ready to modify or expand the program, now seen as buying more than 1 trillion euros (US$1.13 trillion) in bonds to counter a potentially deflationary spiral.

    “What’s important is to emphasize our readiness and our decisiveness, should the need for action arise,” Praet, of Belgian and German ancestry, told the newspaper.

    “That’s premature, at this time, but the risks in the world economy have increased significantly. We have had to correct our economic forecasts downward and we want to be ready to act, should the conditions demand it.”

    Earlier this month, the bank cut its growth and inflation forecasts, warning of possible further trouble from China. For the first time, ECB president Mario Draghi said explicitly the bond-buying program may be extended.(SD-Agencies)